Consider a simple Keynesian model with taxation. Suppose the marginal tax rate is t = 0.4 and the marginal propensity to consume is c = 0.66. Then an exogenous increase in investment demand of 100 units will:             Group of answer choicesIncrease equilibrium output by approximately 150 unitsIncrease equilibrium output by approximately 167 unitsIncrease equilibrium output by approximately 267 unitsIncrease equilibrium output by approximately 750 units

Consider a simple Keynesian model without government spending or taxation. Suppose autonomous consumption is 500 and autonomous investment is 300 and the equilibrium level of output is 2400. Then the marginal propensity to consume is: Group of answer choices2/33/53Uncertain, not enough information.

In the open-economy Keynesian income-expenditure model which includes a government sector with endogenous taxation, which of the following statements could apply to the process of adjustment towards an equilibrium?Group of answer choicesAn increase in government expenditure, without any changes in investment or exports must generate a matching change in the sum of saving, taxation and imports.An increase in investment by itself will generate a rise in saving, imports and taxation via changes in the level of income.An increase in injections would cause a matching increase in withdrawals because of the resulting change in the level of income occurring through the multiplier.All of the other statements are correct.

Consider a Keynesian model with consumption functionC = 100 + c(Y – T),              0<c<1where taxes T are given byT = 100 + tY,                   0<t<1 with marginal tax rate t. An increase in G will increase equilibrium output by the multiplierGroup of answer choices1/(1 – c – c*t)1/(1 – c + c*t)1/(1 – c*t)1/(1 – c)

In the Keynesian income-expenditure model, equilibrium income is necessarily equal to a multiple ofGroup of answer choicesthe autonomous component of consumption, regardless of whether the economy is closed or openthe exogenous component of planned aggregate expenditurethe marginal propensity to consume minus the sum of the marginal tax rate and marginal propensity to importnone of the other alternatives are correct.

In the Keynesian cross , assume the Consumption Function is given by : C= 200 + 0.75 (Y-T). Planned investment is 100; government purchases and taxes are both 100. What is the equilibrium level of Income?